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  • Conquering 6 workforce planning challenges with Anaplan

    Conquering 6 workforce planning challenges with AnaplanWhy workforce planning and optimization initiatives cant be put off any longer

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    Enterprise workforce planning: 5 reasons why it matters Your workforce is likely your most expensive assetand yet an investment in a workforce planning

    platform isnt usually a top priority for executives. But did you know that companies tackling their

    workforce planning and optimization with Anaplan are saving 25 percent on their payroll costs?

    Lets dive into workforce planning and why it matters. In a recent webinar poll, Anaplan asked what

    was the main reason why workforce planning matters to your organization.

    Although answers were dispersed, we found that over 40 percent agree that workforce planning

    matters most because of the cost of the workforce on the overall business. This is a true concern for

    organizations: The fact is, if your workforce strategy and headcount planning arent as efficient and

    effective as possible, there can be a huge loss in cost and cycle times due to turnover or resources

    wasted because of incorrect allocation of headcount.

    In a recent survey, companies ranked their satisfaction with existing workforce planning tools as 2.8 out of 5. They ranked the importance of analytical capabilities for workforce planning as 4.6 out of 5.

    Source: Society for Human Resources Management

    Source: Crunchflow. Global Workforce Planning

    Survey. Published August 2016.

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    With 41 percent of HR leaders polled claiming workforce planning matters most due to the cost of the workforce, efficient hiring and payroll processes are clearly needed.

    The diversity of the benefits or impacts highlighted in the poll explain why workforce planning is so

    importantit touches and can impact everything from collaboration (internally) to customer experience

    (externally). This shifting mindset implies that HR professionals are seeing their responsibilities broaden

    across the organization to more directly impact both the top and bottom line. In order to measure

    workforce planning against the broader business and market dynamic, leading HR organizations are

    investing in workforce planning, optimizing their hourly workforce, and people analytics. This depth of

    insight into the workforce can not only decrease turnover and increase employee engagement, but can

    also cut costs and help managers better act on previously unseen opportunities to impact business results.

    In this white paper, we discuss how you can transform you HR processes with Anaplan to meet these

    growing workforce planning expectations. We identify six challenges you can conquer when investing in

    workforce planning platform, including:

    1. Gaining a true picture of your workforce capacity and current headcount

    2. Modeling and predicting attrition

    3. Forecasting workforce demand accurately

    4. Preparing a workforce gap analysis down to the role

    5. Testing the impact of significant workforce changes

    6. Creating a data-driven hiring plan

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    6 workforce challenges you can conquer with AnaplanWhether you are using dispersed HRMS systems comprised of point solutions, a legacy planning

    system, spreadsheets, or a mix of the three, you are likely quite familiar with the headaches of

    consolidating data and departmental hiring planning to gain a accurate picture on the health

    of your workforce.

    With Anaplan, you gain a real-time pulse on your workforce by aggregating data and a single

    view across recruiting, onboarding, headcount costs, compensation, and succession planning

    to ensure your planning and resourcing strategies are most effective. In this section, we will

    discuss six of the most common workforce planning challenges we see with our customers

    and lay out how you can conquer these challenges to optimize your workforce using Anaplan.

    There has been a seismic shift in the war for talent. Those that dont understand that shift and change their approach to talent management are going to fall into a newly opened crevasse from which they may never escape.- George Bradt,

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    01 Gain a true picture of your workforce capacity and current headcountAt first glance, a dashboard that gives you an up-to-date picture of your key workforce dimensions may

    not seem like a big deal. But anyone who has tried to produce such a view without a solution like Anaplan

    will readily agree that it is difficult, if not impossible, to maintain.

    The reason why capturing a picture of the current state of your workforce is so difficult is due to the

    dynamic nature of your datawhat your organization looks like today is different than what it will look

    like tomorrow. People will leave, new people will get hired, some others may be termed, roles will change,

    etc. If you try to manage this in Excel, the data will be out-of-date by the time you finish your analysis,

    if not before.

    The solution to this challenge is to have the data from supporting systems integrated into your model in

    order to get automatic daily updates. A common question is: Cant I get all of this from my HRMS system?

    The answer is: You can get some of it. Many of your basic employee dimensions will be in your HRMS, as

    well as employee movement data. However, there is much more that needs to be consideredsuch as

    financial information and contractor/contingent labor, for examplebut if those arent in your HRMS, then

    you wont have a complete picture nor will you be able to develop a workforce planning model. For many

    HR practitioners, having a near real-time view of their key workforce headcount KPIs is a big advantage

    and the starting point for more advanced workforce planning.

    In Anaplan: When it comes to determining your workforce capacity, there are a couple of ways that having

    an Anaplan model can assist. If your employee population is primarily exempt workers (i.e., salaried), then

    capacity can be calculated at the headcount level (pulled from HRMS), by role or employee, with expected

    attrition deducted to come up with a net capacity headcount number. You may choose to attach some

    form of productivity standard to convert headcount into a related business driver, such as determining

    how many IT systems your organization can support. Either way, being able to model this in Anaplan is

    incredibly powerful.

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    For non-exempt employee populations, you will want to get more precise on capacity, meaning the

    calculation should not be rounded and you take it to at least one decimal point. Why does this matter?

    Because minutes matter when it comes to large employee populations and when you are talking about

    customer service and labor costs. Fortunately, with Anaplan, you can net out all non-productive workforce

    capacity by modeling historical data. The resulting KPI is productive full-time equivalents (PFTE), and it is

    an integral component of the ultimate workforce demand and supply gap analysis.

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    02 Model and predict attritionPerhaps no other topic in HR analytics has received as much attention recently as attrition. The increasing popularity of big data and predictive analytics has given rise to the question: Can we predict which

    employees will perform best or leave the company soon? Successfully answering these questions can

    prove to be very valuable.

    There are two fundamental ways to look at attrition: looking back and looking forward. A basic model of

    attrition looking back should consider, at the minimum, turnover by month and whether it is voluntary

    or involuntary. If voluntary, then determine whether it is regretted or not regretted. This data can be

    incorporated into a workforce planning model simply as a monthly average to get a sense of the impact

    on headcount.

    In Anaplan: With Anaplans powerful modeling capabilities and pre-built algorithms, you can do much

    more. First, it should be noted that there is no substitute for ample historical data if you wish to predict

    Customer success story: Tableau

    The scope of our headcount can be a complicated matter. Every department plans headcount differently and on a different cadence. So each planning team really needs to own their own data. We want people to self-serve with their data, and Anaplan allows us to really edit our data.

    Erin Hoff, Business Analyst, Tableau

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    attrition (or anything else for that matter). The more variables you have related to employees, the more

    likely you will be able to correlate something to attrition. For example, you could capture and model the

    following items: source of hire, candidate test scores, length of commute, who is the manager, the team,

    and so on. Not all will prove to be relevant but you wont know until you test them.

    This is where Anaplan comes in. Once you have your data in Anaplan, you can apply and test up to 15

    different algorithms against your data set and rank the results based on mean absolute percent error (MAPE).

    For example one customer leveraged this functionality to model their